Principals at the two firms say the deal, which closed June 30, will create the region’s largest independent media buying and advertising firm.

“It makes us a real powerhouse in West Michigan,” said David Kettler, principal of Media Place Partners. “It’s a reflection of the growth of Grand Rapids and really positions us as the largest media services company in West Michigan.”

Media Place Partners, with just under 10 employees, will continue to operate under the same name, Kettler said.

The deal offers Adtegrity an opportunity to expand beyond web and mobile ad buying to more traditional advertising methods, according to President and CEO Scott Brew.

“It’s an opportunity to have one plus one equal three. Both entities in their own right are looking to grow their core businesses,” Brew said. “We’re essentially providing an all-in-one media services company that can help buy efficiently. The fact that we’re an independent company not affiliated with a larger media organization that won’t preferentially run ads on their own companies — that’s helpful. It really doesn’t exist, certainly in the West Michigan market or really in the Michigan market in general.”

Brew and Kettler started discussions about a possible acquisition in January. Early on, they realized a deal would create myriad synergies and complementary services. It would also allow Adtegrity to delve into some new areas such as radio and television advertising.

“Media Place Partners gives us the broader spectrum of sort of traditional media buying and allows us to be strategic for a client that wants all of their media intelligently bought in a way that is strategically consistent,” Brew said.

Executives at both companies declined to disclose the terms of the deal or annual revenues for either entity. While Adtegrity is a traded publicly on the over-the-counter market, it is not required to file its annual financial results. For 2014, the most-recent year available, the company reported that it generated nearly $20.5 million in revenue with net income of $572,918.

INDUSTRY GROWTH

The deal seems to come at a time of increased consolidation in the $500 billion media advertising industry.

Digital Marketing Magazinecalled 2017 “the year of consolidation in the advertising industry,” with Forbes noting that the consolidation is largely driven by companies seeking higher returns.

Moreover, trends in the global advertising industry signal growth opportunities for the recently completed Adtegrity-Media Place Partners deal, which creates a company of about 50 people.

In its 2016-2020 outlook for the internet advertising industry, consulting firm PricewaterhouseCoopers LLP forecasts an expansion of 11.1 percent over the next five years. Mobile advertising is expected to grow 19.6 percent to $84.4 billion over the same time, according to the report.

TIME OF CHANGE

As Adtegrity begins to integrate the Media Place Partners business into its operations, it’s also undertaking several other organizational changes.

Earlier this month, the company announced it had hired New York City ad industry veteran Jonathan Slavin as its chief revenue officer. Additionally, Adtegrity has started the process of moving its headquarters to a new 20,000-square-foot space above New Holland Brewing Co.’s satellite facility on Bridge Street in Grand Rapids’ west side neighborhood.

In April, the company said it would leave its 9,200-square-foot offices at 38 Commerce in the Heartside neighborhood of downtown Grand Rapids, as MiBizpreviously reported.

While the acquisition of Media Place Partners, the hiring of Slavin and moving the headquarters aren’t necessarily linked, Brew said the disparate changes all equate to growth opportunities for the company.

“Those pieces, the move to the west side: It’s a real opportunity to dial in our marketing to the industry,” Brew said. “It’s a lot of jumping on opportunities to take the company to the next level.”

Adtegrity worked with attorneys Michael Jones and John Inhulsen from Warner Norcross & Judd LLP for the acquisition, while Media Place Partners was represented by Eric Post at Varnum LLP.